HANSEN TECHNOLOGIES LIMITED — Interim / Quarterly Report 2016

Feb 14, 2016

HANSEN TECHNOLOGIES LTD ABN 90 090 996 455 AND CONTROLLED ENTITIES

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HALF-YEAR INFORMATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2015

PROVIDED TO THE ASX UNDER LISTING RULE 4.2A.3

This half-year financial report is to be read in conjunction with the financial report for the year ended 30 June 2015.

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Rule 4.2A.3

Appendix 4D Half Year Report for the six months to 31 December 2015

Hansen Technologies Ltd and its Controlled Entities

ABN: 90 090 996 455

1. Reporting period

Report for the half year ended: 31 December 2015 Previous corresponding periods: Financial year ended 30 June 2015 Half-year ended 31 December 2014

2. Results for announcement to the market

	$A’000	$A’000
Revenues from ordinary activities Net profit after tax attributable to members	Up 50% to 73,988 Up 43% to 12,628
	Amount per security	Franked amount per security
Interim Dividend Declared
Interim dividend for the 2016 fiscal year	3¢	2.5¢
Interim dividend for previous corresponding period	3¢	2.5¢
Record date for determining entitlements to the dividend	10 March 2016
Previous Final Dividend Paid
Final dividend for the year ended 30 June 2015	3¢	2.5¢
Final dividend for previous corresponding period	3¢	3¢

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The Group operating result for the half year to 31 December 2015 was:

• Operating revenue of $74.0 million

• EBITDA of $22.3 million

• Net Profit after tax of $12.6 million

• Earnings per share of 7.1 cents, up 1.7 cents per share or 31% from the 5.4 cents per share in the previous corresponding period

The Directors of Hansen have declared a consistent 3 cents per share interim dividend with:

• 2.5 cents per share fully franked

• 0.5 cents per share unfranked

• a record date of 10 March 2016

• payment on 31 March 2016

• the conduit foreign income component of this interim dividend is Nil

• the application price for shares issued in accordance with the Company’s Dividend Reinvestment Plan will be the full undiscounted value

NOTE: Shareholders wishing to participate in the Dividend Reinvestment Plan need to have lodged the required DRP Notice with the Company’s Share Registry by no later than 5.00pm on the business day immediately following the record date. Accordingly the last date for DRP election in respect to this interim dividend is 11 March 2016.

Results from Operations for the half-year ended 31 December

	Half-year to Dec 2014 $A million	Half-year to Dec 2015 $A million	Variance
Operatingrevenue	49.2	74.0	up50%
EBITDA	15.9	22.3	up 40%
Profit before tax	12.5	17.8	up42%
Income tax expense	(3.7)	(5.1)	up38%
Netprofit after tax	8.8	12.6	up43%
Earningsper share	5.4 cents	7.1 cents	up31%

We are pleased to be reporting another strong period of performance for the company, with the first half results ahead of the previous corresponding period and the prior six months ended 30 June 2015.

We have continued to benefit from international expansion with the first full six months contribution from the TeleBilling business purchased in May 2015 reflected in the results. The TeleBilling business has been successfully integrated and continues to deliver opportunities within the Scandinavian market. We have also seen strong organic growth in our core billing business as a direct result of our continued investment in sales and marketing. This investment in our people and our products has delivered new opportunities particularly in India in the Pay TV market and in Japan in the Retail Energy sector.

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The decline of the Australian dollar against most currencies has also had a positive impact on our results. It is important however to acknowledge that Hansen now operates significant business offshore, negating to a degree the positive impact of foreign exchange on the business’s margin.

Hansen has a successful track record of increasing shareholder value by acquiring and integrating targeted businesses. We continue to execute on this acquisition program which remains focused on businesses aligned to our core.

	Immediately preceding half-year $A million	Current fiscal year 2015/16 $A million
	Half year to June 2015	Half year to December 2015	Variance
Operating revenue	57.1	74.0	up 30%
EBITDA	15.4	22.3	up 45%
Profit before tax	11.5	17.8	up55%
Income tax expense	(3.4)	(5.1)	up50%
Netprofit after tax	8.1	12.6	up56%
Earningsper share	4.9 cents	7.1 cents	up45%

3. Net tangible assets per security

. Net tangible assets per security
Net tangible asset backing per ordinary security	Current period	Previous corresponding period(30 June 2015)
	11.2 cents	5.6 cents

4. Dividends

Three cent interim dividend - year ended 30 June 2015 Three cent final dividend - year ended 30 June 2015	Date of payment	Total amount of dividend
	27 March 2015	$4,898,691
	30 September 2015	$5,306,560

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Amount per security

Amount per security
	Amount per security	Franked amount per security at 30% tax	Amount per security of foreign sourced dividend
Total dividend: Current year (interim) Previous year (final) Previousyear(interim)	3¢	83%	0¢
	3¢	83%	0¢
	3¢	83%	0¢

Total dividend on all securities paid during the half-year

Ordinary securities Total	December 2015 $A'000	December 2014 $A'000
	5,307	4,874
	5,307	4,874

5. Details of dividend or distribution reinvestment plans in operation are described below:

A Dividend Reinvestment Plan has been established to provide shareholders with the opportunity to reinvest dividends in new shares rather than receiving cash. Detail of Hansen’s Dividend Reinvestment Plan including the share pricing methodology is available on line at: www.hsntech.com/investors/shareholder-information

The price for shares to be applied for in accordance with the DRP plan for this dividend shall be the full undiscounted value as prescribed by the plan.

The conduit foreign income component of this final dividend is nil.

The last date(s) for receipt of election notices for participation in the dividend or distribution reinvestment 11 March 2016 plan

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6. The financial information provided in the Appendix 4D is based on the half year condensed financial report (attached).

7. Independent review of the financial report

The financial report has been independently reviewed. The financial report is not subject to a modified independent auditors review statement.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

HANSEN TECHNOLOGIES LTD

ABN 90 090 996 455

AND CONTROLLED ENTITIES

FINANCIAL REPORT

FOR THE HALF-YEAR ENDED

31 DECEMBER 2015

This half-year financial report is to be read in conjunction with the financial report for the year ended 30 June 2015.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

HANSEN TECHNOLOGIES LTD AND CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED

31 DECEMBER 2015

TABLE OF CONTENTS

	Page
Directors' Report	3-4
Auditor’s Independence Declaration	5
Financial Report for the half year ended 31 December 2015
Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income	6
Condensed Consolidated Statement of Financial Position	7
Condensed Consolidated Statement of Changes in Equity	8
Condensed Consolidated Statement of Cash Flows	9
Notes to the Condensed Consolidated Financial Statements	10-15
Directors' Declaration	16
Independent Auditor's Review Report	17-18

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Directors' Report

The Directors present their report together with the condensed financial report of the consolidated entity consisting of Hansen Technologies Ltd and its controlled entities for the half-year ended 31 December 2015 and independent review report thereon. This financial report has been prepared in accordance with AASB 134 Interim Financial Reporting.

Directors Names

The names of the Directors in office at any time during or since the end of the half-year are:

Name	Period of Directorship
Mr David Trude	Chairman since 2011
Mr Andrew Hansen	Managing Director since 2000
Mr Bruce Adams	Director since 2000
Mr Peter Berry	Director since 2012
Ms Sarah Morgan	Director since 2014
Mr David Osborne	Director since 2006

The Directors have been in office since the start of the financial period to the date of this report unless otherwise stated.

Review of Operations

The consolidated profit of the Group for the half-year after providing for income tax amounted to $12,627,693 representing a 43% increase on the $8,820,435 in the previous corresponding period.

• The group operating result for the half year to 31 December 2015 comprised: - Operating revenue of $74.0 million, a 50% increase over the previous corresponding period; and - EBITDA of $22.3 million, up 40% on the previous corresponding period.

The Directors of Hansen have declared a consistent 3 cents per share interim dividend with 2.5 cents per share fully franked and 0.5 cents per share unfranked.

We are pleased to be reporting another strong period of performance for the company, with the first half results ahead of the previous corresponding period and the prior six months ended 30 June 2015.

We have continued to benefit from international expansion with the first full six months contribution from the TeleBilling business purchased in May 2015 reflected in the results. The TeleBilling business has been successfully integrated and continues to deliver opportunities within the Scandinavian market. We have also seen strong organic growth in our core billing business as a direct result of our continued investment in sales and marketing. This investment in our people and our products has delivered new opportunities particularly in India in the Pay TV market and in Japan in the Retail Energy sector.

The decline of the Australian dollar against most currencies has also had a positive impact on our results. It is important however to acknowledge that Hansen now operates significant business offshore, negating to a degree the positive impact of foreign exchange on the business's margin.

Hansen has a successful track record of increasing shareholder value by acquiring and integrating targeted businesses. We continue to execute on this acquisition program which remains focused on businesses aligned to our core.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Significant Changes in the State of Affairs

There have been no significant changes in the company's state of affairs during the half-year.

Auditor's Independence Declaration

A copy of the auditor’s independence declaration as required under section 307C of the Corporation Act 2001 in relation to the review for the half-year is provided with this report.

Rounding of Amounts to Nearest Thousand Dollars

The amounts contained in the report and in the financial report have been rounded to the nearest thousand dollars (where rounding is applicable) under the option available to the company under ASIC Class Order 98/0100. The company is an entity to which the Class Order applies.

Signed in accordance with a resolution of the Directors:

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David Trude Director

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Andrew Hansen Director

Dated this 15th day of February 2016

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

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Auditor's Independence Declaration

To the Directors of Hansen Technologies Ltd.

In relation to the independent auditor's review for the half-year ended 31 December 2015, to the best of my knowledge and belief there have been:

(i) No contraventions of the auditor independence requirements of the Corporations Act 2001; and

(ii) No contraventions of any applicable code of professional conduct.

This declaration is in respect of Hansen Technologies Ltd and the entities it controlled during the period.

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S D WHITCHURCH Partner

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PITCHER PARTNERS Melbourne

15 February 2016

An independent Victorian Partnership ABN 27 975 255 196 Level 19, 15 William Street, Melbourne VIC 3000 Liability limited by a scheme approved under Professional Standards Legislation

Pitcher Partners is an association of independent firms Melbourne | Sydney | Perth | Adelaide | Brisbane | Newcastle An independent member of Baker Tilly International

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the Half-Year Ended 31 December 2015

Continuing operations Revenue from continuing operations Net foreign currency gains Other income Total revenue and other income Less: expenses Employee expenses Amortisation expense Depreciation expense Property and operating rental expenses Contractor and consultant expenses Software licence expenses Hardware and software expenses Travel expenses Communication expenses Professional expenses Other expenses Total expenses Profit before income tax expense Income tax expense Net profit after income tax from continuing operations Other comprehensive income Items that may be reclassified subsequently to profit and loss Exchange differences on translation of foreign operations 2 Other comprehensive income for the half-year Basic earnings (cents) per share Diluted earnings (cents) per share Total comprehensive income attributable to members of the parent Earnings per share for profit from continuing operations attributable to equity holders of the parent entity:	Half-year to Dec	Half-year to Dec
	2015	2014
	$'000	$'000
	73,988 50 105	49,169 515 147
	74,143	49,831
	(37,126) (3,253) (1,289) (2,909) (1,917) (484) (3,179) (2,634) (1,043) (751) (1,794)	(25,852) (2,400) (808) (2,093) (735) (394) (1,520) (1,733) (532) (583) (684)
	(56,379)	(37,334)
	17,764 (5,136)	12,497 (3,677)
	12,628	8,820
	2,795	6,156
	2,795	6,156
	15,423	14,976
	7.1 6.9	5.4 5.3

The accompanying notes form part of these condensed consolidated financial statements.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Financial Position As at 31 December 2015

Current assets Cash and cash equivalents 5 Receivables Other current assets Total current assets Non-current assets Plant, equipment & leasehold improvements 6 Intangible assets Deferred tax assets Total non-current assets Total assets Current liabilities Payables Borrowings 7 Current tax payable Provisions Deferred revenue Total current liabilities Non-current liabilities Deferred tax liabilities Borrowings 7 Provisions Total non-current liabilities Total liabilities Net assets Equity Share capital Foreign currency translation reserve Options granted reserve Retained earnings Total equity	Dec-15	Jun-15
	$'000	$'000
	23,792 22,015 6,062	21,985 19,950 5,202
	51,869	47,137
	7,108 105,919 3,438	7,556 104,103 3,599
	116,465	115,258
	168,334	162,395
	9,623 92 1,888 8,871 18,055	8,005 10,087 3,813 8,862 13,570
	38,529	44,337
	4,151 339 198	4,012 374 143
	4,688	4,529
	43,217	48,866
	125,117	113,529
	76,456 10,741 1,110 36,810	75,127 7,946 967 29,489
	125,117	113,529

The accompanying notes form part of these condensed consolidated financial statements.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Changes in Equity For the Half-Year Ended 31 December 2015

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Changes in Equity For the Half-Year Ended 31 December 2015
Consolidated Balance as at 1 July 2015 Profit for the half-year Exchange differences on translation of foreign operations Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Options exercised Employee share options Capital issued under dividend reinvestment plan Share purchase plan costs Dividends paid 3 Total transactions with owners in their capacity as owners Balance as at 31 December 2015	Half-year to Dec
	Contributed Equity	Reserves	Retained Earnings	Total Equity
	$'000	$'000	$'000	$'000
	75,127 - -	8,913 - 2,795	29,489 12,628 -	113,529 12,628 2,795
	-	2,795	12,628	15,423
	797 - 563 (31) -	- 143 - - -	- - - - (5,307)	797 143 563 (31) (5,307)
	1,329	143	(5,307)	(3,835)
	76,456	11,851	36,810	125,117

Consolidated Balance as at 1 July 2014 Profit for the half-year Exchange differences on translation of foreign operations Total comprehensive income for the half-year Transactions with owners in their capacity as owners: Options exercised Employee share options Capital issued under dividend reinvestment plan Dividends paid 3 Total transactions with owners in their capacity as owners Balance as at 31 December 2014	Half-year to Dec	Half-year to Dec	Half-year to Dec	Half-year to Dec
	Contributed Equity	Reserves	Retained Earnings	Total Equity
	$'000	$'000	$'000	$'000
	45,126 - -	(1,358) - 6,156	22,318 8,820 -	66,086 8,820 6,156
	-	6,156	8,820	14,976
	1,189 - 1,101 -	- 109 - -	- - - (4,874)	1,189 109 1,101 (4,874)
	2,290	109	(4,874)	(2,475)
	47,416	4,907	26,264	78,587

The accompanying notes form part of these condensed consolidated financial statements.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Cash Flows For the Half-Year Ended 31 December 2015

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Cash Flows For the Half-Year Ended 31 December 2015
Cash flows from operating activities Receipts from customers Payments to suppliers and employees Net interest Income tax paid Net cash provided by operating activities Cash flows from investing activities Payment for plant and equipment Payment for capitalised development costs Net cash used in investing activities Cash flows from financing activities Proceeds from options exercised Dividends paid net of dividend re-investment Repayment of borrowings Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of half-year Cash and cash equivalents at end of the half-year	Half-year to Dec
	2015	2014
	$'000	$'000
	77,986 (52,389) (1) (6,759)	52,485 (34,102) 10 (2,368)
	18,837	16,025
	(843) (2,240)	(1,668) (1,789)
	(3,083)	(3,457)
	797 (4,744) (10,000)	1,189 (3,774) (8,055)
	(13,947)	(10,640)
	1,807 21,985	1,928 3,829
	23,792	5,757

The accompanying notes form part of these condensed consolidated financial statements.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Notes to the Half-Year Financial Statements 31 December 2015

1 Basis of Preparation of the Half-Year Financial Report

This condensed consolidated half-year financial report does not include all the notes of the type usually included in an annual financial report.

It is recommended that this half-year financial report be read in conjunction with the annual financial report for the year ended 30 June 2015 and any public announcements made by Hansen Technologies Limited during the half-year in accordance with any continuous disclosure obligations arising under the Corporations Act 2001 .

Hansen Technologies Ltd is a for-profit entity for the purpose of preparing the financial statements.

The half-year financial report was authorised for issue by the Directors as at the date of the Directors' report.

(a) Basis of preparation

This condensed consolidated half-year financial report has been prepared in accordance with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001. Compliance with AASB 134, as appropriate for for-profit entities, ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting.

The half-year financial report has been prepared under the historical cost convention, as modified by revaluations to fair value for certain classes of assets as described in the accounting policies.

The accounting policies applied in this half-year financial report are consistent with those of the annual financial report for the year ended 30 June 2015 and the corresponding half-year.

(b) Rounding amounts

The company is of a kind referred to in ASIC Class Order CO 98/0100 and in accordance with that Class Order, amounts in the financial statements have been rounded off to the nearest thousand dollars, or in certain cases, to the nearest dollar.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

(c) Accounting standards issued but not yet effective

The following standards and interpretations have been issued at the reporting date but are not yet effective. The Directors’ assessment of the impact of these standards and interpretations is set out below.

(i) AASB 15 Revenue from contracts with customers

AASB 15 introduces a five step process for revenue recognition with the core principle being for entities to recognise revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the entity expects to be entitled in exchange for those goods or services. The five step approach is as follows:

• Step 1: Identify the contracts with the customer;

• Step 2: Identify the separate performance obligations;

• Step 3: Determine the transaction price;

• Step 4: Allocate the transaction price; and

• Step 5: Recognise revenue when a performance obligation is satisfied.

AASB 15 will also result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multiple-element arrangements.

The effective date is annual reporting periods beginning on or after 1 January 2018.

The changes in revenue recognition requirements in AASB 15 may cause changes to the timing and amount of revenue recorded in the financial statements as well as additional disclosures. The impact if any of AASB 15 has not yet been quantified.

(ii) AASB 9 Financial Instruments

AASB 9 makes significant revisions to the classification and measurement of financial assets, reducing the number of categories and simplifying the measurement choices, including the removal of impairment testing of assets measured at fair value. The amortised cost model is available for debt assets meeting both business model and cash flow characteristics tests. All investments in equity instruments using AASB 9 are to be measured at fair value.

AASB 9 amends measurement rules for financial liabilities that the entity elects to measure at fair value through profit and loss. Changes in fair value attributable to changes in the entity’s own credit risk are presented in other comprehensive income.

Impairment of assets is now based on expected losses in AASB 9 which requires entities to measure:

• the 12-month expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or

• full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument.

The effective date is annual reporting periods beginning on or after 1 January 2018.

Other standards and interpretations have been issued at the reporting date but are not yet effective. When adopted, these standards and interpretations are likely to impact on the financial information presented, however the assessment of impact has not yet been completed.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

2 Foreign currency translations and balances

Exchange differences arising on translation of the foreign controlled entities are recognised in other comprehensive income and accumulated in a separate reserve within equity.

On consolidation, exchange differences arising from the translation of any net investment in foreign entities are recognised in other comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are reclassified to profit or loss as part of the gain or loss on sale.

3 Dividends

Dividends paid during the half-year:

• 3 cent final dividend paid 30 September 2015 - 3 cent final dividend paid 30 September 2014

Dividends declared after the half year and not recognised:

• 3 cent interim dividend (2.5 cents fully franked, 0.5 cents unfranked) - 3 cent interim dividend (2.5 cents fully franked, 0.5 cents unfranked)

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Half-year to Dec
2015 2014
$'000 $'000
5,307
4,874
5,307 4,874
5,318
4,896
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4 Fair Value Measurements

The fair value of financial assets and financial liabilities approximates their carrying amounts as disclosed in the condensed consolidated statement of financial position and notes to the condensed consolidated financial statements.

Included in ‘Other Payables’ is a liability for deferred consideration measured at fair value on a recurring basis, expected to be paid in relation to a business combination dated 1 May 2015.

There are no other assets or liabilities carried at fair value on a recurring basis.

(i) Fair value hierarchy

Asset and liabilities measured and recognised at fair value have been determined by the following fair value measurement hierarchy:

Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 : Input other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 : Inputs for the asset or liability that are not based on observable market data.

Deferred consideration liabilities totalling $2,919,937 are measured and recognised at fair value and have been determined to be a recurring Level 3 financial liability.

(ii) Valuation techniques and significant unobservable inputs

The deferred consideration is based on management’s best and most probable estimate of the business performance targets.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

In determining the fair value of the deferred consideration, management considers the probability of business targets being met by comparison to budget. A fair value is placed on the option that the seller has to receive, either cash or shares in Hansen Technologies Ltd at a pre-determined price using the Black-Scholes model.

The entire deferred consideration payment is dependent on performance criteria being met. Under the arrangement the minimum deferred consideration amount is $nil and the maximum is dependent on the movement in the Hansen share price from the pre-determined price per share (which was included in the contract) and the value as at the date the amount becomes payable.

(iii) Reconciliation of recurring Level 3 fair value movements

Opening balance Deferred consideration from business acquisition Movement in foreign currency Change in fair value of deferred consideration Closing balance	Level 3 Liability	Level 3 Liability
	Dec-15	Jun-15
	$’000	$’000
	2,281 - (43) 682	- 1,881 106 294
	2,920	2,281

The change in fair value of the deferred consideration is recognised in the statement of financial performance as it occurs, whilst the expense in the current period is recorded in the other expenses line item.

5 Cash and cash equivalents

Cash at bank and on hand Interest bearing deposits

Dec-15	Jun-15
$'000	$'000
13,929 9,863	5,718 16,267
23,792	21,985

6 Plant, equipment and leasehold improvements

Plant, equipment and leasehold improvements at cost Accumulated depreciation Reconciliation Carrying amount at the beginning of the period Additions Disposals Depreciation expense Net foreign currency movements arising from foreign operations Carrying amount at the end of the period	Dec-15	Jun-15
	$'000	$'000
	32,785 (25,677)	32,111 (24,555)
	7,108	7,556
	7,556 843 (117) (1,289) 115
	7,108

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

7 Borrowings

The Company has a secured $A30 million multicurrency 3 year term facility with its external bankers to provide additional funding as required for acquisitions and general corporate purposes.

The facility is secured by 90% of Group assets. As at 31 December 2015 the remaining unutilised portion of the facility is $A30 Million.

Current Secured Term facility Lease liability Non-current Secured Lease liability	Dec-15	Jun-15
	$'000	$'000
	- 92	10,000 87
	92	10,087
	- 339	- 374
	339	374

8 Segment Information

a) Description of segments

Inter-segment pricing is determined on an arm's length basis. Segment revenue and results derive from items directly attributable to a segment or those that can be allocated on a reasonable basis.

Business Segments

The consolidated entity has 3 distinct reportable segments as described below:

Billing : Represents the sale of billing applications and the provision of consulting services in regard to billing systems. Outsourcing : Represents the provision of various IT outsourced services covering facilities management, systems and operations support, network services and business continuity support.

Other : Represents software and service provision in superannuation administration.

b) Segment information Half-year 2015 Segment revenue Total segment revenue Segment revenue from external source Segment result Total segment result Segment result from external source Half-year 2014 Segment revenue Total segment revenue Segment revenue from external source Segment result Total segment result Segment result from external source	Half-year to Dec 2015	Half-year to Dec 2015	Half-year to Dec 2015	Half-year to Dec 2015
	Billing	Outsourcing	Other	Total
	$'000	$'000	$'000	$'000
	69,296	3,309	1,383	73,988
	69,296	3,309	1,383	73,988
	16,698	1,421	475	18,594
	16,698	1,421	475	18,594
	Half-year to Dec 2014
	Billing	Outsourcing	Other	Total
	$'000	$'000	$'000	$'000
	44,592	2,989	1,588	49,169
	44,592	2,989	1,588	49,169
	10,944	1,598	558	13,100
	10,944	1,598	558	13,100

The total assets and liabilities of the consolidated entity are not disaggregated on a business segment basis within the management reporting system.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

(i) Reconciliation of segment results to the consolidated result Segment result from external source Net interest Depreciation & amortisation Realised / unrealised foreign exchange differences Other Total profit before income tax	Half-year to Dec	Half-year to Dec
	2015	2014
	$'000	$'000
	18,594 (1) (351) 50 (528)	13,100 (167) (477) 515 (474)
	17,764	12,497

9 Contributed capital

Number of ordinary shares on issue Movement in ordinary shares on issue Beginning of the half-year Dividend re-investment plan Options exercised End of the half-year	Dec-15	Jun-15
	No.	No.
	177,240,753	176,195,333
	176,195,333 205,420 840,000 177,240,753
	176,195,333 205,420 840,000
	177,240,753

10 Contingent Liabilities

There have been no changes in contingent liabilities since 30 June 2015.

11 Subsequent Events

The Directors of Hansen have declared a 3 cent interim dividend, being 2.5 cents per share fully franked and 0.5c per share unfranked, payable to shareholders as of the record date of 10 March 2016, with payment to follow on 31 March 2016.

There were no other material events subsequent to the period ending 31 December 2015 that have significantly affected or may significantly affect the consolidated entity.

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

Hansen Technologies Ltd Directors' Declaration

The Directors declare that the financial statements and notes set out on pages 6 to 15 in accordance with the Corporations Act 2001:

(a) Comply with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 , and other mandatory professional reporting requirements; and

(b) Give a true and fair view of the financial position of the consolidated entity as at 31 December 2015 and of its performance for the half-year ended on that date.

In the Directors’ opinion there are reasonable grounds to believe that Hansen Technologies Ltd will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Directors.

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David Trude Director Melbourne 15 February 2016

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Andrew Hansen Director

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

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INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF HANSEN TECHNOLOGIES LTD

Report on the Half-Year Financial Report

We have reviewed the accompanying half‑year financial report of Hansen Technologies Ltd and controlled entities, which comprises the condensed consolidated statement of financial position as at 31 December 2015, the condensed consolidated statement of comprehensive income, condensed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the half‑year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information and the Directors' declaration of the consolidated entity comprising the company and the entities it controlled at the period's end or from time to time during the half-year.

Directors’ Responsibility for the Half-Year Financial Report

The Directors of the company are responsible for the preparation of the half‑year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such control as the Directors determine is necessary to enable the preparation of the half‑year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half‑year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 31 December 2015 and its performance for the half‑year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Hansen Technologies Ltd and controlled entities, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half‑year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .

An independent Victorian Partnership ABN 27 975 255 196 Level 19, 15 William Street, Melbourne VIC 3000 Liability limited by a scheme approved under Professional Standards Legislation

Pitcher Partners is an association of independent firms Melbourne | Sydney | Perth | Adelaide | Brisbane | Newcastle An independent member of Baker Tilly International

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Hansen Technologies Limited and its controlled entities ABN 90 090 996 455

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INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF HANSEN TECHNOLOGIES LTD

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half‑year financial report of Hansen Technologies Ltd and controlled entities is not in accordance with the Corporations Act 2001 including:

(a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2015 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001.

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S D WHITCHURCH Partner

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PITCHER PARTNERS Melbourne

15 February 2016

An independent Victorian Partnership ABN 27 975 255 196 Level 19, 15 William Street, Melbourne VIC 3000 Liability limited by a scheme approved under Professional Standards Legislation

Pitcher Partners is an association of independent firms Melbourne | Sydney | Perth | Adelaide | Brisbane | Newcastle An independent member of Baker Tilly International

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